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Investing.com - Jefferies downgraded Jonjee Hi-Tech (SS:600872) stock rating from Buy to Hold and lowered its price target to RMB20.00 from RMB22.00 following disappointing first-half results.
The Chinese food company reported sales and net profit declines of 18.6% and 24.1% year-over-year, respectively, for the first half of 2025, according to Jefferies.
Second-quarter performance showed continued weakness with implied sales dropping 9.1% and net profit falling 23.8% compared to the same period last year.
While Jonjee’s gross margin improved due to lower raw material costs, these gains were offset by a higher SG&A ratio resulting from increased channel investments and rising staff costs.
The company adjusted shipments in the second quarter to support pricing and reduce distributors’ inventory levels, but Jefferies noted that ongoing reforms will require time and the industry remains intensely competitive.
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